Federal Land Bank of New Orleans v. Bankston

198 So. 886, 196 La. 146, 1940 La. LEXIS 1158
CourtSupreme Court of Louisiana
DecidedNovember 4, 1940
DocketNo. 35202.
StatusPublished
Cited by1 cases

This text of 198 So. 886 (Federal Land Bank of New Orleans v. Bankston) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Land Bank of New Orleans v. Bankston, 198 So. 886, 196 La. 146, 1940 La. LEXIS 1158 (La. 1940).

Opinion

ROGERS,- Justice.

On May 16, 1924; Martin L. Bankston executed a mortgage in favor of the Federal Land Bank to secure a farm loan in the sum of $1,500 upon 321.46 acres of land in Sections 1, 2 and 12, Township 3, South, Range 7 East, Tangipahoa Parish. Bankston, the mortgagor, died on the 16th day of August, 1926. During his lifetime and for some time after his death, the installments on the loan were regularly paid. The loan finally became delinquent and the mortgage was foreclosed, the bank becoming the purchaser at the sale on November 10, 1934. The description of the property is the same in the act of mortgage, the foreclosure proceedings, the adjudication of the property, and the sheriff’s deed. In this suit instituted against the widow and heirs of Martin L. Bankston, the Federal Land Bank, as the purchaser of the property at the foreclosure sale, is now asking that the act of mortgage and the sheriff’s deed be corrected “so as to include,. by whatever description, sufficient land in the western portion of Section 59, Township 3 South, Range 7 East, to comprise within its limits the land on which are located the residence and dairy barn formerly belonging to M. L. Bankston, together with the appurtenances thereunto dedicated, and the right of way thereto.”

As the basis of its action, plaintiff alleges that it was the intention of the parties to include in the mortgage a strip of land “running North and South, off the west side of Section 59, Township 3 South, Range 7 East, extending from the west line of said Section sufficiently, East to include the land upon which is situated the main dwelling and dairy barn formerly belonging to M. L. Bankston, together with the appurtenances thereunto dedicated;” and *149 “that their failure so to ■ do was induced by error, or, in the alternative, by fraud on the part of M. L. Bankston * * ■*.”

Defendants filed pleas of estoppel and prescription and an exception of no right or cause of action. The record shows that the plea of prescription was referred to the merits but it does not show what disposition was made of the plea of estoppel and the exception of no right or cause of action. Defendants, in their answer, which was filed with full reservation of their exceptions and pleas, denied that the mortgage held by the plaintiff bank covered any portion of the land situated in Section 59. They allege that M. L. Bankston, during his lifetime, owned two separate farms,' one consisting of 321.46 acres situated in Sections 1, 2 and 12, and the other consisting of approximately 153 acres, situated in Section 59; that the mortgage was given upon the farm lying in Sections 1, 2 and 12 and not upon the property situated in Section 59, the title to which was in litigation at the time. Defendants denied that there was any error, fraud or misrepresentation committed by M. L. Bankston, or by defendants, and that the officials of the Federal Land Bank were induced to believe that the mortgage covered property situated in Section 59.

The case was heard upon the merits and upon the plea of prescription, which was referred to the merits, and judgment was rendered in favor of defendants dismissing the suit. From that judgment the plaintiff appealed.

We think that the judgment of the district court, based on the facts, not being manifestly erroneous, should be affirmed.

This suit was filed on July 31, 1936, which was more than two years after the foreclosure of the mortgage and the execution of the sheriff’s deed. The object of the suit is to secure, because of error or fraud, the correction of the mortgage executed by M. L. Bankston on May 16, 1934, so as to bring within the terms of the mortgage a dwelling, dairy barn, and an indefinite portion of land situated in Section 59-Plaintiff contends that it is entitled to the relief sought because the application for the loan, signed by M. L. Bankston, shows that there were two dwellings and two barns upon the property which Bankston proposed to mortgage. In fact, in support of its charges of error or fraud, plaintiff wholly relies upon the application for the loan, together with the report of the bank’s appraiser.

The execution of the application for the loan by M. L. Bankston is not questioned. This application consists of a series of printed questions and the written answers thereto appearing in the blank spaces provided for that purpose. . The answers to certain questions indicate that the applicant Bankston owned twenty-nine head of cattle and was engaged in the business of “farming and dairying,” and that he lived and was then on the “above land,” meaning, we take it, the land described in the application. The application refers to two dwellings and two barns located on the land proposed to be mortgaged, with the value placed upon each building.

An examination of the report- of the bank’s appraiser shows that the appraiser personally examined the property Bank *151 ston proposed to mortgage and indicates that the improvements located on the land consisted of a main dwelling valued at $1,500 and a dairy barn valued at $500. The appraiser placed a total value of $2,200 on all the improvements located on the property, and a value of $2,655 on the land. On the value thus given, the maximum loan value of the land was $1,327 and of the improvements, $400, a total of $1,727.

The appraiser, in his report, characterizes the applicant as a “good farmer and dairyman,” and states that from the appearance of the farm and what he could learn, in his opinion, the gross earnings of the farm, including $600 from dairy v products, was $1,795. As a witness for plaintiff, the appraiser was examined and cross-examined in connection with his report.

The application for the loan was signed by M. L. Bankston and witnessed by R. H. Sanders, the secretary-treasurer of the Amite National Farm Association. Mr. Sanders handled the application for the loan association, and by comparing the written answers to the printed questions with his signature, it is clear that the answers were prepared and written fey him and not by Bankston. Mr. Sanders was not called as a witness. Bankston died long prior to the trial of this case, and defendants were not in a position to avail themselves of his testimony concerning the transaction.

The application for the loan not only indicates what we have hereinabove set forth, but it contains a particular description of the property that Bankston proposed to mortgage. This description definitely shows that the property consisted of 321.46 acres of land in Sections 1, 2 and 12 and does not show any land in Section 59. Endorsed on the application is a sketch of the land showing the location and number of acres in each section to be mortgaged. This sketch likewise fails to show that any of the land is situated in Section 59. The description of the property contained in the body of the application is identical with the description of the property as given on the accompanying sketch. No improvements are indicated on the sketch, although it appears that applicant, under “H. General” of the application, acquired the 321 acres he proposed to mortgage by inheritance from his father in 1918 and since that time he had made improvements valued at $3,000 on the property, the improvements consisting of building, fencing and clearing.

The testimony of the bank’s appraiser adds nothing to the value of his report.

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Bluebook (online)
198 So. 886, 196 La. 146, 1940 La. LEXIS 1158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-land-bank-of-new-orleans-v-bankston-la-1940.